Fund raising

Day 12, 00:00 • Published in Spain Spain • by Joseangel

The advantage of collectivists is they have a link of trust between companies and shareholders (also employees), rooted in their communities outside Erepublik. The rest of us cannot raise the funds we need to open a company quickly, and even less to buy export licenses or invest in quality production. But that is exactly what we need to compete and survive. How could we achieve it?|||We must choose who to trust and try to stablish guarantees. I suggest we do this through a system of open information and public certification, similar to the real stock markets.

1.- Company managers should issue a document stating their commitment with shareholders: what's their plan for the company (not too detailed) and how do they plan to reward investors. It's important to specifically express that all the money invested will remain in the company or returned to investors and it will not be taken by the owner for personal use or to fund other companies. If the owner collects a salary this should be indicated too. Of course, he receives dividends just like other investors and in proportion with his own investment.

2.- Each individual is born with 100 monetary units and is able to invest (donate) say 90%. Choose one company whose owner has proven to be a successful entrepreneur. Look in your country for the oldest companies alive and you should invest on these or the new projects of their owners. No real need to change jobs.

3.- Since donations and company results are in public records we can evaluate their behaviour. Additionally, it would be very convenient to have newspapers publishing which companies respect these commitments and which don't, as well as an extensive coverage of abuse cases. Companies could include a reference to these external newspapers in their profiles.

Unfortunately, this is not a real stock market, we cannot trade shares, but perhaps this way a few companies could quickly raise the funds needed to produce higher quality goods and supply our country with what we need. Not so different from what collectivists are doing, except that in this case all is based in Erepublik. That makes it certainly riskier since we've all just met here, haven't we?

Naturally, I won't be a recommended manager, I have no experience. But I'm willing to invest 100 ESP on a trained entrepreneur who issues a convincing commitment. I know some who would be very happy to play just to con me, but I'll take the risk for discovering if better quality food can take me over the 50% wellness.

Joseangel